Solar Loans

  • Most popular solar financing method

  • Own your system

  • Receive rebates and incentives

Get Proposals from Solar Installers

Get customized estimates for the cost of solar on your home!
The Rodriguez family - Thousand Oaks, CA

“We had been looking in to getting solar for a while, but had trouble comparing and evaluating the prices installers were giving us. After finding Solar to the People, we received proposals from four installers in their network and they helped us determine which would be the best option for our house. We were extremely impressed with the quality of installers they recommended, and we ended up selecting one and paying about $6,400 less for our system than we had originally expected. Great company.”

The Henderson family - Bellmore, NY

“I was sick and tired of paying more and more for electricity each year. We never thought we could afford solar panels, but then we saw Solar to the People’s study on the prices of solar in New York and were shocked to learn how much the cost had dropped. I immediately went on their site and requested quotes from their installers. We couldn’t be happier with our decision to go solar – our average power bill now is just seven dollars a month! ”

Harry Wu and Gabriela Acomando - La Mesa, CA

“My wife and I were curious about solar, but frankly, I didn’t trust the solar sales people who had been calling us and knocking on our door. I came across Solar to the People in one of my Google searches, and they had a lot of really in depth information about solar on their site. To me, getting my questions answered online and being able to choose from multiple installers made all the difference. We got a great deal on our solar system and ended up paying about 20% less than the quotes we had gotten from other solar companies in the past. ”

The Thorpes - Newton, MA

“My husband and I both work full-time, and since we’ve had our daughter, we don’t have time to do a bunch of research on solar installers. We found Solar to the People through their online Solar Guide, and ended up purchasing our panels through their installer network. We wanted recommendations we could trust and Solar to the People gave us that peace of mind.”

Solar Loans

  • Ownership of your solar system
  • Loan is taken out to finance the cost of the system – you pay it back over time
  • Many loans are $0 down – allows you to start receiving benefits of solar power immediately
  • You’re entitled to any available incentives and rebates
  • There are a variety of providers to choose from for a loan

Try Our Solar Calculator to Estimate Your Potential Savings

Discover how much you can save today with our solar calculator

Your average monthly electric bill

Solar loans are rapidly becoming one of the most popular choices for financing solar today. They frequently provide better overall savings than solar leases or PPAs, as you own the system and consequently receive the 30% Federal Investment Tax credit for your solar purchase, as well as any state and utility rebates. In addition, you don’t have to pay for solar lease maintenance costs or profit margins.

Most importantly with the advent of zero-down solar loans (loans where no upfront payment is required), homeowners are able to immediately start saving on their power bill, while increasing the value of their home by the value of their panels.

How Do Solar Loans Work?

Solar loans are loans issued expressly for putting solar panels on a house. They have a principal amount, an annual interest rate, monthly payment requirements, and a payback period, just like any other loan. For example, you might see a $20,000 solar loan with a 4.5% interest rate, and a fifteen-year payback period. These loans work quite similarly to a home improvement loan or an auto loan.

Banks, credit unions and solar installers issue loans, so you have plenty of potential providers to choose from. These providers are creating new loan options all the time, so it is becoming easier and easier for homeowners to find a loan that fits their exact financing needs.

A Solar Loan Example - Savings Over a 20 Year Period With a 15 year Loan

Solar Loan Advantages

  • Solar loans frequently have the highest net savings of all the financing types, with the exception of cash purchases.
  • Unlike leases and PPAs, loans allow you to own your solar panels.
  • Since you own your solar panels, you receive the federal tax credit in the first year – in other words, the government essentially pays you the first year if you take advantage of the tax credit.
    • In addition, you receive all state and local incentives as well, since you are the owner of the solar panels.
  • Solar loans offer immediate savings over your electric bill.
  • Zero-down solar loans are widely available.
  • Most providers offer a zero-down loan option.
    • Initially, zero-down was only available in solar leases or solar PPAs, but now that zero down loans exist homeowners are able to take advantage of financing that allows them to own their panels without an initial cash outlay.

Get Proposals from Solar Installers

Get customized estimates for the cost of solar on your home!

Is a Solar Loan Right for Me?

Loans are ideal for homeowners who:

  • Want to own their panels but don’t want to pay cash up-front.
  • Want to immediately add the value of your solar system to the value of their home.
  • Are willing to do a little more legwork and monitoring to ensure they get the maximum savings available.

Loan Types - Secured vs. Unsecured vs. Municipally-Financed (PACE Loans)

There are three types of solar loans available today to consumers – secured, unsecured and municipal. We drill into the differences in the table below, but the principal difference between the two is that secured loans use your home as collateral, while unsecured loans utilize the solar panels themselves as collateral.

Solar Loan Comparison

Type Secured Solar Loans Unsecured Solar Loans Municipal Solar Loans (PACE)
What is used as collateral? Home Solar Panels Home
Is there an FHA Guarantee? Yes No Depends
Loan terms 5-20 years 5-20 years Varies
Interest rate 3.5-6.5% 3.5-9% 3% and up
Interest is tax-deductible? Yes No Yes
Special notes Lower origination fees than unsecured

Frequently Asked Questions About Solar Loans

What happens when you sell your home?

Homeowners sell their homes with solar loans on their panels on a regular basis. The seller pays off the loan with the payment for the solar on the home, or in some cases the new owner takes out a separate solar loan and uses the proceeds to buy out the previous owner’s loan. The panels are considered in the price for the home, and homeowners receive the value of the panels during the sale as part of the overall price for the house.

Does a solar loan increase the value of my home?

Indirectly, yes. Solar panels that you own on your home increase the home value by as much as the panels are worth during a home sale.

Why are savings higher with a solar loan than with a solar lease?

Savings are higher with loans than leases for the exact same reason that auto loans are less expensive overall than auto leases – the provider of the money doesn’t have to be involved in the long-run. Solar lease providers are concerned with upkeep, figuring out if they priced the lease correctly in the first place, handling monitoring, etc. Solar loans are just like a regular loan – a bank or other financing organization provides you with a loan, and you purchase and own the asset (in this case residential solar panels).

Are there any risks associated with solar loans?

Solar loan risks are the same as with any other loan, such as a car loan or a home loan, except for the fact that the loan serves to reduce another bill (power), which is required. Really it’s more of a substitution of costs. Nevertheless, it is very important that the homeowner budgets for the loan correctly and factors the loan payments into their regular budget.

Where Can You Get Solar Loans?

Solar installers, banks, credit unions, and independent financing companies all provide loans, so the options for homeowners are increasing all the time.

All of our pre-screened providers offer loan options along with other financing options.

Get Proposals from Solar Installers

Get customized estimates for the cost of solar on your home!


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